Total bank credit in Serbia reached approximately RSD 4.37 trillion at the close of December 2025, reflecting a month-on-month increase of 2.1%, according to data from the Association of Serbian Banks. This growth indicates a year-end acceleration in lending across both corporate and household sectors, despite ongoing high interest rates and a cautious approach from banks regarding credit issuance.
Corporate lending was the primary contributor to this monthly increase, with loans to businesses rising by about 2.6% compared to November, resulting in total exposure to the corporate sector reaching around RSD 2.34 trillion. This growth is attributed to a mix of short-term working capital financing and selective investment loans, particularly in sectors such as trade, energy-intensive industries, construction, and export-oriented manufacturing. Additionally, lending to entrepreneurs also saw an uptick, with outstanding balances increasing by approximately 2.0% to nearly RSD 96.2 billion by year-end.
Household borrowing exhibited more gradual growth but remained positive, with total loans to individuals increasing by roughly 1.5% in December, which brought household credit exposure to about RSD 1.93 trillion. Within this category, cash and consumer loans experienced the most significant monthly growth at close to 2%, while housing loans maintained steady expansion due to ongoing demand for residential properties and refinancing options, despite tighter affordability conditions compared to previous years.
In terms of risk management within the banking sector, the share of non-performing loans (NPLs) at the end of December stood at approximately 1.9% of total outstanding credit, showing a slight improvement from November figures. This suggests that increased interest costs have not yet led to a significant decline in asset quality, supported by prudent lending practices and sustained income growth among key borrower segments.
The context for December’s lending data is shaped by the broader macro-financial environment influenced by monetary policy and inflation trends. Throughout 2025, the National Bank of Serbia maintained a restrictive monetary policy aimed at controlling inflation expectations, which resulted in higher borrowing costs across the economy. Nevertheless, demand for credit remained unexpectedly resilient, particularly among corporations seeking funding for inventories and energy-efficient projects amidst fluctuating input prices.
On an annual basis, the acceleration in December lending highlights a rebound towards the end of the year following a relatively subdued first half. As banks enter 2026 with strong capital buffers and high liquidity ratios while maintaining limited exposure to problematic assets, there is potential for further selective credit expansion moving forward. However, future lending patterns will be closely tied to interest rate expectations, inflation trends, and external economic conditions that could influence funding costs and investment sentiment in Serbia.
The data from December indicates that Serbia’s banking sector concluded 2025 with renewed momentum in lending activities and stable asset quality. While there are risks associated with global financial conditions and domestic demand fluctuations, banks appear committed to supporting economic activity through corporate financing and essential household lending as the country transitions into the new year.
